KGL Resources lands US$300m Wheaton funding for Jervois build Proactive uses images sourced from Shutterstock

KGL Resources Ltd (ASX:KGL, OTC:KGLLF) has secured a US$300 million precious metals streaming agreement with Wheaton Precious Metals that will help fund construction and development of the Jervois Copper Project in the Northern Territory. The package includes US$275 million in upfront consideration and a further US$25 million contingent cost overrun facility, with the initial US$32 million early deposit available once customary conditions are met.

The funding is structured around silver and gold by-product streams, leaving KGL’s copper production unencumbered and giving the company full exposure to the copper market. KGL said the deal recognises the value of Jervois’ precious metals credits while avoiding traditional fixed repayment obligations and project financing-style covenants, which should reduce risk during commissioning and ramp-up.

“We are delighted to secure this significant capital commitment from a leading global precious metals streaming company as a major cornerstone partner in our financing strategy for the Jervois Project. Our advisors ran a global process and the Wheaton proposal was the most attractive on several fronts and suitable for our needs to finance Jervois," KGL’s chairman, Jeff Gerard, said.

Update due by May as funding push continues

Attention will now turn to finalising the remaining funding package and updating project delivery settings. KGL said it is finalising the scope and cost of the process plant construction contract, updating the production schedule, allowing for price escalation where needed and incorporating changes linked to commodity price movements. The company expects this review to lift both overall capital cost estimates and projected revenues compared with the 2025 feasibility study update, with a further update targeted by May 2026, subject to final review outcomes and board approval.

Alongside the Wheaton deal, KGL said it remains in active discussions with global traders, off-takers and other capital providers as it works to secure full project funding. Wheaton has also committed to participate in a future KGL equity raising linked to Jervois, for up to the lesser of A$35 million or 20% of shares offered, provided the raising is completed within 12 months and Wheaton’s holding stays below 9.9%.

“This partnership with Wheaton is the culmination of a significant amount of work and collaboration by KGL, our advisors and the Wheaton team. This is an exciting and significant milestone for KGL which supports the next phases of advancing the Jervois project towards production. The near-term availability of the Early Deposit ensures we can maintain our development schedule, and we are now on the cusp of breaking ground on Australia’s next major copper mine," KGL’s CEO, Sam Strohmayr, said.

The streaming arrangement is intended in part to fund construction and development of the Jervois Copper Project, with the early deposit supporting near-term works and helping KGL maintain its development schedule as it moves closer to breaking ground.

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